SunEdison Inc. (NYSE: SUNE) has had some defenders of the company, but this week may have been the week where the holdout bulls who insisted there was value here finally capitulated. The bad news continues piling up as cash dwindles and a contract with Hawaiian Electric was cancelled.
Bank of America Merrill Lynch offered this analysis of SunEdison:
We are downgrading shares of SunEdison to Neutral. Our three main reasons are (1) continued concerns around access to financing, (2) legal issues related to the Latin America Power (LAP) and Vivint Solar transactions, and (3) execution challenges given the significant numbers of distractions facing the management team. While underlying solar market fundamentals remain robust and SUNE could continue to benefit from the industry trends, we believe financing and legal overhangs could continue to keep the stock volatile and therefore move to the sidelines.
The analysts also cut their price target from $10.00 to $2.50.
Credit Suisse cut its rating from Outperform to Neutral and slashed its price target from $19 to $3, and UBS cut its price target from $2.00 to $0.75 with a Sell rating.
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